We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BP and Orlen Reach Crude Supply Agreement for Polish Ports
Read MoreHide Full Article
BP plc (BP - Free Report) has entered into a significant agreement with Orlen, a Polish refiner, to supply 6 million metric tons (MMt) of crude oil from the North Sea over the next year. This volume, equivalent to around 150,000 barrels per day, should be able to meet 15% of Orlen’s annual feedstock requirements.
The first deliveries under this contract are scheduled to begin in September, with crude oil cargoes arriving at the Polish port of Gdansk and the Lithuanian port of Butinge.
Diversifying Orlen’s Feedstock Portfolio
Orlen, which currently processes a wide range of crude oils, including Forties, Brent, and various Norwegian grades such as Oseberg and Johan Sverdrup, has been actively diversifying its supply sources. In addition to North Sea crudes, the company has increasingly incorporated WTI Midland, Bakken and Mars crudes from the United States, as well as Persian Gulf and West African grades like Forcados and Bonny Light, into its feedstock mix.
Economic and Strategic Benefits
Ireneusz Fafara, president of the ORLEN management board, emphasized the economic and operational benefits of the new deal. He noted that the North Sea crude oil is not only consistently high in quality but also comes from geographically close fields. Its properties ensure high yields and are well-suited for processing at ORLEN's refineries. This enhances the overall economic efficiency of its production facilities.
Expanding BP’s Role in the Region
BP sees this agreement as a critical step in strengthening its business presence in Poland and the broader Central and Eastern European region. Bogdan Kucharski, head of country for BP Poland, expressed optimism about the future of the partnership, highlighting that BP’s capability to provide a range of crude oil types aligns with Orlen’s diverse refining requirements. The agreement to supply Norwegian crude oil is seen as a significant advancement for BP's operations in Poland and contributes to improving energy security for the country and the broader Central and Eastern European region.
This deal not only reinforces Orlen’s supply-chain resilience but also positions BP as a key player in ensuring energy security across the region.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.57. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 in the past seven days.
MPLX derives stable fee-based revenues, driven by long-term contracts, with minimal exposure to commodity-price fluctuations. The partnership’s robust capital expenditure forecast for 2024, along with significant expansion initiatives, underscores its commitment to sustainable growth.
The Zacks Consensus Estimate for MPLX’s 2024 EPS is pegged at $4.21. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
The Williams Companies is a premier energy infrastructure provider in North America. The company’s core operations include finding, producing, gathering, processing, and transporting natural gas and natural gas liquids. Boasting a widespread pipeline system of more than 33,000 miles, Williams is one of the largest domestic transporters of natural gas by volume.
The Zacks Consensus Estimate for WMB’s 2024 EPS is pegged at $1.80. The company has witnessed upward earnings estimate revisions for 2025 in the past seven days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
BP and Orlen Reach Crude Supply Agreement for Polish Ports
BP plc (BP - Free Report) has entered into a significant agreement with Orlen, a Polish refiner, to supply 6 million metric tons (MMt) of crude oil from the North Sea over the next year. This volume, equivalent to around 150,000 barrels per day, should be able to meet 15% of Orlen’s annual feedstock requirements.
The first deliveries under this contract are scheduled to begin in September, with crude oil cargoes arriving at the Polish port of Gdansk and the Lithuanian port of Butinge.
Diversifying Orlen’s Feedstock Portfolio
Orlen, which currently processes a wide range of crude oils, including Forties, Brent, and various Norwegian grades such as Oseberg and Johan Sverdrup, has been actively diversifying its supply sources. In addition to North Sea crudes, the company has increasingly incorporated WTI Midland, Bakken and Mars crudes from the United States, as well as Persian Gulf and West African grades like Forcados and Bonny Light, into its feedstock mix.
Economic and Strategic Benefits
Ireneusz Fafara, president of the ORLEN management board, emphasized the economic and operational benefits of the new deal. He noted that the North Sea crude oil is not only consistently high in quality but also comes from geographically close fields. Its properties ensure high yields and are well-suited for processing at ORLEN's refineries. This enhances the overall economic efficiency of its production facilities.
Expanding BP’s Role in the Region
BP sees this agreement as a critical step in strengthening its business presence in Poland and the broader Central and Eastern European region. Bogdan Kucharski, head of country for BP Poland, expressed optimism about the future of the partnership, highlighting that BP’s capability to provide a range of crude oil types aligns with Orlen’s diverse refining requirements. The agreement to supply Norwegian crude oil is seen as a significant advancement for BP's operations in Poland and contributes to improving energy security for the country and the broader Central and Eastern European region.
This deal not only reinforces Orlen’s supply-chain resilience but also positions BP as a key player in ensuring energy security across the region.
Zacks Rank & Key Picks
BP currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like SM Energy Company (SM - Free Report) , MPLX LP (MPLX - Free Report) and The Williams Companies, Inc. (WMB - Free Report) . While SM Energy currently sports a Zacks Rank #1 (Strong Buy), MPLX and The Williams Companies carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.57. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 in the past seven days.
MPLX derives stable fee-based revenues, driven by long-term contracts, with minimal exposure to commodity-price fluctuations. The partnership’s robust capital expenditure forecast for 2024, along with significant expansion initiatives, underscores its commitment to sustainable growth.
The Zacks Consensus Estimate for MPLX’s 2024 EPS is pegged at $4.21. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
The Williams Companies is a premier energy infrastructure provider in North America. The company’s core operations include finding, producing, gathering, processing, and transporting natural gas and natural gas liquids. Boasting a widespread pipeline system of more than 33,000 miles, Williams is one of the largest domestic transporters of natural gas by volume.
The Zacks Consensus Estimate for WMB’s 2024 EPS is pegged at $1.80. The company has witnessed upward earnings estimate revisions for 2025 in the past seven days.